What Decentralized Betting on Anything Might Mean…
Another Dapp is climbing the charts as we speak. Augur is a decentralized prediction marketplace created by the Forecast Foundation, a not-for-profit corporation whose goal is to build “open-source, public forecasting tools.”
Prediction markets — which are a general type of financial market — have long been dominated by the likes of Paddy Power and DraftKings, which are centrally owned, operated and regulated.
The purpose of the marketplace offers anyone, anywhere a chance to launch their own event and place bets on the outcome. This also allows the platform to create a higher level of liquidity and volume, as well as a diversity of topics not typically covered by traditional prediction markets.
Augur raised about $5.5 million in an initial coin offering in 2015, though its REP tokens now have a $377.3 million market capitalization in secondary market trading. It plans to settle bets in Ethereum, while it plans to user REP tokens as incentives for users to accurately report on bets, or dispute outcomes that have been incorrectly reported.
Vitalik Buterin, founder of Ethereum and advisor to the Forecast Foundation, while commenting on the launch of Augur’s decentralized platform said, “I have been excited about the possibility of prediction markets on Ethereum for a long time, and I’m pleased to see Augur being a leader in releasing such a sophisticated system into the wild.”
Augur was one of the first decentralized applications built on Ethereum and its launch signals another milestone in the cryptocurrency timeline. Also, the ability to bet on anything means hedging could mitigate some of uncertainty plaguing financial markets and even crypto as a whole.
“Anyone can create a market,” said Tom Kysar, head of operations at the Forecast Foundation. “Augur is truly global financial market. If you look at financial markets today, it’s hard for Apple stock to trade in Russia or China. Capital controls make that trade difficult.”